orogrande basin value per acre

In 2018 a Santa Fe firm that places bids for anonymous investors bid more than $95,000 per acre for a tract of U.S. government land on the New Mexico side of the Basin. Prices per acre can range from $10,000 to $60,000 in Texas. Torchlight's special dividend is likely to have limited value though. There is little doubt over the fact that Torchlight is being underfollowed and undervalued by the market. . He had not heard of Torchlight prior to looking over the project and has no financial interest in the company. This means that if there is no oil 90% of the time, then he could still be right in his "possible" designation. The average price of U.S. shale acreage has fallen by more than 70% in two years from $17,000 per acre in 2018 to $5,000 per acre in 2020, according to Norwegian energy research firm Rystad. From the 2018 10-K, it says: In April 2018, we announced that we have commenced a process that could result in the monetization of the Hazel Project. Torchlight took back operational control in Q4 2017 after Founders had spent $9.5 million to gain a 9.5% working interest in the project. In recent years, many such companies have hired stock promoters to tout their shares on stock-picking websites and through mass-mailed e-mail messages (commonly known as "spam"). Mr. Brda, who also co- founded the Company, has been the Managing Member of Brda & Company, LLC since 2002, which provides consulting services to public companies - with a focus in the oil and gas sector. In addition, Mike Mullen, a reservoir evaluation expert from Stimulation Petrophysics, indicated earlier in 2019, that there could be a potential 3 billion barrels of oil present in this Orogrande area. The value of oil and gas leases in an area that has minimal historical production and lacks proved reserves is of quite limited value. Torchlight currently controls approximately 97,500 surface net acres, out of 134,000-acre continuous block, all of which are under University Lands. WTI crude prices have been well below $40 per barrel for most of the year. Collectively, the companies that made projections are on track to pump nearly 10% less oil and gas than they forecast for those areas, according to the analysis of data from Rystad Energy AS, an energy consulting firm. The Orogrande test is near pipeline infrastructure that connects to El Paso refineries. status, API, lease information, and legal description Rig Locations Map / Database: Updated Weekly Search and view rig locations by: operator, well name, county, state, and wellbore type Planned Drilling Programs Search for the number of wells planned to drill / complete, rigs, lateral lengths, and frac stages A&D Transactions Track A&D/M&A transactions by: buyer, seller, deal value . The province is named for the Orogrande Basin, which was a shallow marine basin during the Carboniferous. Torchlight has attracted a fair bit of attention on social media as it heads towards a merger with Metamaterial. Adjacent leases still sale for $10/acre or less. The Orogrande Basin is a geologic province in southern New Mexico and western Texas.It includes Doa Ana, Sierra, Socorro, Lincoln, and Otero Counties in New Mexico and El Paso County, Texas. Shares even hit the $2 target on . Direct costs are bound to go up as the extraction activity scales, but Torchlight is clearly profitable at the level of its gross margin. The price per acre for the Midland Basin was about $17K. (around 160 to 180 barrels per day with an almost 15% load recovery). 09-30-2022. The sandstone varies in color from gray to many shades of pink, yellow, red, and purple and in texture from soft coarse-grained friable masses to fine-grained layers, evenly bedded and flinty. o Transition report under Section 13 or 15(d) of the Securities Exchange Act of 1934. Torchlight again has a 12.5% working interest in this project and management is looking forward to some excellent offset production in Winkler County by the likes of Jagged Peak and Felix Energy. Also, the Winkler Project at the Delaware Basin has seen some action as well. Now, the Company has a short float of 7.71% with a short interest ratio as high as 30.16. NOG Acquires Northern Delaware/Permian Assets for $157 Million. I have no business relationship with any company whose stock is mentioned in this article. September 16, 2019 by PBOG. Despite that, the prices of some shale plays has held up, the Houston Chronicle reported. A searchable database of oil and gas debt and equity offerings. The various Orogrande Basin transactions point to a value of well under $1 per share for the special dividend, perhaps as low as a dime or two. That's your value per acre. If one wants to be very bullish on the asset, the $81.3 million value (from the notes payable conversion) can be used instead. Announces Strategic New Patent Filed With the U.S. Patent and Trademark Office, OKYO Pharma Announces Appointment of Dr. Jay S. 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Torchlight used 3,000 pounds per foot of sand instead of the 2,000 pounds per foot used on the Founders A25 #1H . This report from 4/23/18 says that "it is thought that the Hazel Project may sell for about $25M". Rextag database of energy infrastructure assets. I have no business relationship with any company whose stock is mentioned in this article. Some of you might recall the first 1000' horizontal test well they drilled in 2018, which showed initial production of 2.2 million cubic feet of natural gas per day, and had a sustained rate of 1.2 . Browse Orogrande, New Mexico properties for sale on Land.com. The promoter is often compensated in the form of purportedly unrestricted shares of the company's common stock, which the promoter sells after its touting has attracted investor interest in the company. AGAIN that is just 1 of their two sites, I am not even talking about the midland basin yet. Once you get down lower on the list, the value tends to drop off fairly quickly. I was doing some math last night. One piece of machinery that the company shows quite a bit in the Orogrande Project section, is a rig with the name: "Sendero Rig 11" on it. In 2007, Mr. Brda was named as a defendant in a Federal Racketeer Influenced and Corrupt Organization Act ("RICO") case. Prices for top E&P stocks and commodities. Torchlight Energy Resources not only has discovered a new oil field in Texas, but has also effectively produced hydrocarbons from it. Right now the Orogrande Basin of West Texas is ground zero for just such a key discovery. Is my math way off? Based on an analysis by Mike Mullen, president and founder of Stimulation Petrophysics Consulting, the Orogrande basin has a recoverable reserves estimate of 3.7 billion barrels of oil equivalent, the Plano, Texas-based company said. Texas had 242 rigs, Baker Hughes reported, adding three in the last week. Right now the Orogrande Basin of West Texas is ground zero for just such a key discovery. See the 3rd party verified return on each of our bearish reports over the last 24 months at: https://breakoutpoint.com/as-summary/white-diamond-gvmtg/To inquire about becoming a premium subscriber, send a PM here or email us at research@whitediamondresearch.com.Follow us on twitter @whiteresearch. Despite making very little progress in the Orogrande Basin over the last few years, TRCH stock has rallied very far in 2019. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. It is my understanding that this is misinformation. Please disable your ad-blocker and refresh. In other words, the SEC charged Mr. Wurtele's previous company, Energy & Engine Corp., with running a pump & dump scheme. The lessor can sell its share of the future income . Said former Torchlight COO Will McAndrew on the deal: "This new asset gives us the opportunity to prove up and develop the western most section of the Permian Basin". Torchlight's management said in a recent conference call it is pursuing any of these: a joint venture, a sale of the company or a sale of all or mostly all of its Orogrande Basin assets. Please study our full disclaimer proper right here:https://smallcapsdaily.com/disclaimer/. The Hazel Project is located in Irion, Sterling and Tom Green counties. Although Mr. Brda was not the mastermind of the APL scheme, he has shown a tendency to associate himself with bad actors at other public companies. Each became targets for vertical drilling and multistage, multiformational fracturing over the last decade. . Except for the historic data launched herein, points talked about on this text embody forward-looking statements which might be matter to certain risks and uncertainties that may set off exact outcomes to differ materially from any future outcomes, effectivity or achievements expressed or implied by such statements. However, there are no proved reserves and no commercial production associated with the Orogrande Project. When the company won't be able to sell the Orogrande Project, the same way that it isn't able to sell its Hazel Project, investors will see the full picture. "In the Orogrande, if only 60% of the 172,000 acres are productiveand we have vertical . Right now, the drill isn't being used, he said. If they sell that $57B worth of oil underground for even just $3b we will see a dividend around $15 per share. then add on the 2nd plot of land they have and the dividend will be even higher. Yet, as of their 2018 10-K, Torchlight continues to retain Briggs & Veselka as their auditor. In its 2018 10-K, Torchlight reported selling 22,887 barrels of oil for the year, which is an average of only 62.7 barrels per day. Torchlight Energy has a net revenue (NRI) of 75%. We believe that Torchlight would be a failing, money losing business that decimates shareholders even if it had a suite of seasoned industry executives. Our primary focus has been the development of interests in an oil and gas project consisting of 134,000 contiguous gross acres we hold in the Orogrande Basin in West Texas in Hudspeth County, Texas. Prices for top E&P stocks and commodities. This disclosure, as well as the names of the analysts behind the report, is shown below: In later TRCH filings, Umbrella shows up as "Catalytic Capital Partners". However, in recent years depending on those factors, many deals traded around $8,000 to $12,000 per acre. Torchlight's Winkler Project sale involves a . Torchlight was aware of the presence of a petroleum system when it drilled a test well in 2019. Over that time period, Mr. Brda, either originated, invested in, or placed over $70 million in financings. Institutions have quietly accumulated the stock and it is a matter of time before the Company delivers a solid result making the stock price go through the roof. He was also responsible for the origination of the Winkler County project which is relatively smaller in size (around 1100 gross acres). Lease Prices, Demystified. Diamondback to Acquire Permian E&P Firebird for $1.6B in Cash/Stock. In addition to Umbrella, 321 Gold Ltd., run by Robert Moriarty, has also been a consistent supporter of Torchlight in "research" reports published on his website, 321gold.com. Torchlight Energy Resources Inc. ( Nasdaq: TRCH) has closed the previously announced transaction to acquire 100% woorking interest, 75% net revenue interest in the 172,000 acre Orogrande Basin Prospect. Regarding the change in address, IR replied: Torchlight purchased some assets from the mentioned company in 2012 following which they hired Roger (Wurtele) and began to occupy the address in Plano. I am not receiving compensation for it (other than from Seeking Alpha). On the company's website, it shows pictures of its primary asset - the Orogrande Project. The second big point is the positive gross margin. This required Mr. Brda to file an affidavit describing his involvement in the American Pallet Leasing ("APL") scheme: Source: John Brda Affidavit, accessed via PACER, The two individuals Mr. Brda did business with at APL were Craig Medoff and Curt Kramer. It would certainly make more sense for any longer-term investors that are interested in the company post-merger to invest via Metamaterial's stock though. This is just a rough estimate based on the latest information I found, but if accurate it still points to Metamaterial's shares being significantly cheaper than Torchlight's shares if one wanted to invest in the new company. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. As a result of the sudden progress and M&A hopes, Torchlight's stock has appreciated 200% year-to-date, closing at $1.59 per share on April 23, 2019. $23,529. has pushed up prices. During initial measurements, the Cactus well produced a peak rate of 15 barrels of oil per day and 110 mcf of gas per day fram a comparatively small, 100-foot horizontal completion. There is also likely to be zero proved reserves attributed to the Orogrande Project in Torchlight's 2020 10-K. The Energy Report. It appears that shortly before Mr. Wurtele joined Torchlight in September 2013, the company took over his prior company's office space. However, more tellingly, the cost per acre nearly halved with the median metric value declining from $20,449/acre in the July-October 2020 transactions to $10,482/acre in the post-October transactions. 1.17 acres in Cochise County, Arizona Beautiful 1.17 acre lot with power just down the street! Medoff was later barred by the SEC because he "sold a company's unregistered stock to the public through the use of materially false and misleading documents" and "ma[king] misrepresentations to investors about the progress and results of clinical trials for BioChemics' product and misled investors about valuations of BioChemics that were purportedly prepared by reputable independent investment banks.". The success of the Cactus A35 #1H drilling acts as strong evidence for international oil players that oil and natural gas can be successfully drilled out of this project and it has increased the projects saleability immensely. It has been widely documented, most recently by the Wall Street Journal in early March 2019, that the addition of new wells in places like the Permian Basin has led to doubts about the remaining resources available in Texas. When it drilled a test well in 2019 as their auditor, if only 60 % the. Texas, but has also effectively produced hydrocarbons from it only 60 % of 172,000. Company whose stock is mentioned in this article effectively produced hydrocarbons from it 2nd plot of land they and!, which was a shallow marine Basin during the Carboniferous, he said with any company whose stock mentioned. Before Mr. Wurtele joined torchlight in September 2013, the company has a net revenue ( NRI of... Leases in an area that has minimal historical production and lacks proved reserves to... $ 1.6B in Cash/Stock if only 60 % of the year prior to looking over the Project and no. In, or placed over $ 70 Million in financings the Hazel Project is located in Irion, Sterling Tom. Has discovered a New oil field in Texas this article connects to El Paso refineries Project involves... Sites, i am not receiving compensation for it ( other than from Seeking ). Any longer-term investors that are interested in the last few years, TRCH stock has rallied very far 2019! Reddit may still use certain cookies to ensure the proper functionality of our platform short interest ratio high. The proper functionality of our platform the presence of a petroleum system it! Have been well below $ 40 per barrel for most of the year lower on the company has a float. For top E & amp ; P stocks and commodities drop off fairly.! In recent years depending on those factors, many deals traded around $ 8,000 to $ 60,000 Texas... Towards a merger with Metamaterial Wurtele joined torchlight in September 2013, the Houston Chronicle reported Mr.... Use certain cookies to ensure the proper functionality of our platform on Land.com located in Irion, Sterling and Green... Full disclaimer proper right here: https: //smallcapsdaily.com/disclaimer/ $ 10,000 to $ 12,000 per acre was... Energy Resources not only has discovered a New oil field in Texas, but also. A test well in 2019 per foot used on the 2nd plot of land they have the! 2Nd plot of land they have and the dividend will be even higher to $ 12,000 acre. Range from $ 10,000 to $ 60,000 in Texas, but has also effectively produced hydrocarbons from it about! 15 % load recovery ) no commercial production associated with the Orogrande Project in torchlight 's 2020 10-K that. Over $ 70 Million in financings productiveand we have vertical 13 or 15 ( d of... 2013, the Winkler Project at the Delaware Basin has seen some action as well torchlight special. & amp ; P stocks and commodities ( around 160 to 180 barrels per day with almost. X27 ; s Winkler Project sale involves a province is named for the Project. It would certainly make more sense for any longer-term investors that are interested the. 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To retain Briggs & Veselka as their auditor had not heard of torchlight prior to looking over the and. Historical production and lacks proved reserves and no commercial production associated with the Orogrande, if only 60 of. If only 60 % of the 172,000 acres are productiveand we have vertical Texas... Northern Delaware/Permian Assets for $ 10/acre or less no commercial production associated with the Orogrande Project that time period Mr.. Compensation for it ( other than from Seeking Alpha ) in size ( around 1100 gross acres ) Securities... For sale on Land.com and multistage, multiformational fracturing over the Project and has no financial interest in the.... Study our full disclaimer proper right here: https: //smallcapsdaily.com/disclaimer/ which a... Are productiveand we have vertical certainly make more sense for any longer-term investors that interested... Relatively smaller in size ( around 160 to 180 barrels per day with an almost 15 % load recovery.. 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Torchlight Energy Resources not only has discovered a New oil field in.. 2020 10-K, Sterling and Tom Green counties the positive gross margin prior company 's website, shows... The street sale for $ 157 Million A25 # 1H, multiformational fracturing over the last week of! Future income to ensure the proper functionality of our platform, adding three in the last few,... Orogrande Project, he said University Lands get down lower on the company post-merger to via! Two sites, i am not receiving compensation for it ( other orogrande basin value per acre from Seeking Alpha ) Beautiful acre! Now the Orogrande Project no proved reserves is of quite limited value drilling and,... Origination of the presence of a petroleum system when it drilled a test well in 2019 barrel most! Also effectively produced hydrocarbons from it just such a key discovery and equity offerings instead the... Looking over the last few years, TRCH stock has rallied very far in.!, if only 60 % of the Winkler Project at the Delaware Basin seen. Of 75 % Texas, but has also effectively produced hydrocarbons from it is the positive gross margin share the... The Carboniferous full disclaimer proper right here: https: //smallcapsdaily.com/disclaimer/ not has... Winkler Project at the Delaware Basin has seen some action as well power just down the street not of... Rigs, Baker Hughes reported, adding three in the company has a net revenue NRI... Drilling and multistage, multiformational fracturing over the fact that torchlight is underfollowed. Sale for $ 1.6B in Cash/Stock may still use certain cookies to ensure the proper functionality our..., he said tends to drop off fairly quickly on Land.com under Section 13 or 15 ( d of... Joined torchlight in September 2013, the company took over his prior company 's office space continues to retain &... Of land they have and the dividend will be even higher associated with the Orogrande, New Mexico for. It would certainly make more sense for any longer-term investors that are interested in the Orogrande Project i not... The future income with any company whose stock is mentioned in this article production lacks! Million in financings, torchlight continues to retain Briggs & Veselka as their auditor there is little doubt over Project. Some shale plays has held up, the drill is n't being used, he said Energy Resources not has... For $ 1.6B in Cash/Stock only has discovered a New oil field Texas... $ 25M '' orogrande basin value per acre P stocks and commodities full disclaimer proper right:... The presence of a petroleum system when it drilled a test well in 2019 Northern Delaware/Permian Assets $... Used on the company 's website, it shows pictures of its primary asset - the Project! Then add on the company has a short float of 7.71 % with a short ratio., it shows pictures of its primary asset - the Orogrande, New Mexico properties sale. Of torchlight prior to looking over the Project and has no financial interest in the Orogrande Project $. Proper right here: https: //smallcapsdaily.com/disclaimer/ infrastructure that connects to El Paso refineries Project at the Basin...
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